Thread: I've got a question for all of you

Yes - Mine does as well. What a shock every year. But hey - what can you do?

Mine also does this. But I believe that the figures that it was to are right about what it would cost to replace. And it has to go up because a home, most often, appreciates in value. I'm pretty sure they can do this, check your policy. Also, if you feel that the insured amount is too high or too low, contact your insurer.

I think almost every homeowner is soon to see a raise in their insured amounts due to the fact that, following Katrina and tornadoes in the midwest and south, the price of lumber and other building materials are fixing to skyrocket (if they haven't already).

Thanks for the replies. I was wondering if it was happening to other people as well. So much for a fixed rate mortgage loan. Every time my insurance goes up my house payment does too. I've been in my home for seven years and my payment has gone up six of those years because of my house insurance going up.

Mine goes up every year. But it's pretty much in keeping with replacement costs. Everything is more expensive. I'd hate to have to replace everything without it.

Alwyznatiz is correct. It goes up based on the cost of rebuilding your home in case of fire, etc. I know it's inconvenient now, but in case of disaster, you'd be glad you could rebuild like it was, not somewhere short of finished. You might check into raising your deductible to lower the yearly cost if you'd be able to come up w/whatever the deductible amount if needed.
A fixed rate mortgage is the interest rate you pay on your loan, it has nothing to do with homeowner's insurance. Rising property taxes will also raise your payment.

What I meant was my house insurance is included in my payment. When it goes up more escow is needed and they raise my house payment to cover the escrow shortage. I also have to pay an escow shortage amount the beginning of every year. I pay the shortage but my house payment still goes up some to cover the shortage for the next year. My property tax has stayed the same its always the insurance that causes the escrow shortage.

My parents house insurance does the same thing.They have theirs through Farm Bureau and each year it goes up without them even knowing it until the premium is due.
Today they get a letter telling them they now have to have Terrorism insurance as part of their house insurance policy.I am thinking ok we are out in the middle of BFE in Tennessee and we have to have terrorism insurance all righty then. That makes absolutely no sense to me.

That doesn't seem right to try to make someone get terrorism insurance. I hope my insurance company doesn't do that. I have State Farm.

Originally Posted by gmyers

That doesn't seem right to try to make someone get terrorism insurance. I hope my insurance company doesn't do that. I have State Farm.

I agree with you 100%.My mom is going to let my dad look over the papers they got today.She is planning on being on the phone with them tomorrow to discuss the letter.She also thinks it is totally ridiculious to try and force homeowners to have this on their insurance policy when it is not wanted.